It appears that without the legislation, the Bank Of England doesn't feel it can properly overhaul financial institutions:
The ostensible reason for the reform, which means the Bank will not have to print details of its own accounts and the amount of notes and coins flowing through the UK economy, is to allow the Bank more power to overhaul troubled financial institutions in the future, under its Special Resolution Authority.Lord James of Blackheath had the following to say about it while debating the issue in the House of Lords:
Remove [this] control and there is nothing to stop an unreported and unmonitored flooding of the money market by the undisciplined use of the printing presses.Quite right.
"If we went down that path we would be following a road which starts in Weimar, goes on through Harare and must not end in Westminster and London. That is the great fear that the abolition of that section will bring about – but the Bill abolishes it.
8 comments:
Unfortunately, in the long run, it will merely mean inflation.
Yea, hyperinflation will never occur in the developed world...
Hyper or servere, it's just inflation.
So inflation isn't important no matter how large?
Ah,,, did I make you to type my point for me? Inflation only matters when it causes damage.
Then you don't understand the redistribution of wealth inflation causes. Inflation always causes harm.
I wholely disagree. Inflation does not always cause damage.
Care to prove that assertion, or are you only interested in making me prove my points?
Well, I'm drunk right now, but, before I go to the effort and finding rationalization to support the inflation distributing wealth to the rich, I need to make sure you don't understand this....
When the central bank lowers interest rates, the elite have closer access to the easy money. They spend it before prices change, but as this new money is introduced into the market, the prices go up, so by the time wages are adjusted for the new money, prices have already gone up. So the elite have the advantage of spending the new money on old prices, while the workers feel the pain of inflation without wage increases until later...you disagree with this assertion?
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